Details, Explanation and Meaning About Higher Education Contributions Scheme

Higher Education Contributions Scheme Guide, Meaning , Facts, Information and Description

The Higher Education Contribution Scheme, or HECS, is a tertiary education funding scheme introduced in 1989 by the Australian Commonwealth Government. The Commonwealth subsidises the cost of tertiary education for Australian and New Zealand citizens and Australian permanent residents. The amount an individual pays for tertiary education is his or her Higher Education Contribution. HECS is jointly administered by the Department of Education, Science and Training (DEST) and the Australian Taxation Office (ATO).

Table of contents
1 History
2 How HECS Operates
3 Related Schemes
4 Sources and external links

History

From the establishment of the University of Sydney in 1850 and the subsequent development of universities in Melbourne (1853), Adelaide (1874) and Hobart (1890), universities in Australia were small institutions designed almost exclusively to train upper class men for entry into a profession. There was very little research performed in Australia, although internationally prominent Australian academics were able to work at leading British universities during this time including Sir Douglas Mawson and Howard Florey.

Although some scholarships were offered by the universities and governments, these institutions usually required the up-front payment of exorbitant fees, up to £700 per annum (equivalent to AUD 31,000). The fees situation was the same throughout the Western world. There was little motivation and drive to reform the universities, as those disadvantaged by this system were predominantly poorly educated and the less affluent that completed secondary education were virtually guaranteed a job for the remainder of their lives anyway.

In 1940, the Curtin Labor Government decided to increase the size of the universities to complete more civil and military research. In order to do this, it dramatically increased the number of scholarships it offered to enter university and it allowed women to win these scholarships (they were previously exclusive to men). The Menzies Liberal Government also supported and extended the ability of ordinary Australians to attend university.

In the 1960s, the Federal Government encouraged and funded the states to establish new universities to cater for increasing demand. These universities were to be built in outlying suburbs and offer special research scholarships to encourage students to undertake postgraduate research studies. One of the universities established under this programme was Flinders University in Adelaide’s southern suburbs.

During the early 1970s, there was a significant push to reform tertiary education in Australia to make it more accessible to working and middle class Australians and the Whitlam Labor Government abolished university fees in 1973. This decision was also accompanied by the establishment of senior secondary boards to standardise university entry. In 1978, the Fraser Liberal Government reinstated upfront fees for some postgraduate courses, but predominantly maintained the free undergraduate system.

How HECS Operates

Every year, the universities and government offer a certain number of HECS places available to Australian citizens, permanent residents and New Zealand citizens. A student can apply for one of these places through the tertiary admissions office in their State or directly to the university (depending on the requirements of the university).

When first introduced, your HECS was roughly AU$2000 per year of full-time study, irrespective of course or institution. This was intended to represent about 25% of the cost of your course. Changes in government policy have meant that in 2004, the amount of HECS you pay varies according to course. Courses are "banded" according to expected earning power. There are three bands, with a year of full-time study costing:

Band 1 $3,768 Arts, Humanities, Social Studies/Behavioural Sciences, Education, Visual/Performing Arts, Nursing, Justice and Legal Studies
Band 2 $5,367 Mathematics, Computing, other Health Sciences, Agriculture/Renewable Resources, Built Environment/Architecture, Sciences, Engineering/Processing, Administration, Business and Economics
Band 3 $6,283 Law, Medicine, Medical Science, Surgery, Dentistry, Dental Services and Veterinary Science
If the student intends to remain enrolled beyond the HECS Census Date (no debt is incurred if the student leaves before then), the student will need to lodge a “Payment Options Declaration Form” stating how they intend to pay their contribution. Students who are Australian citizens or Australian permanent residents can pay all or part of the fee "up front" and receive a 25%
discount on the amount paid. The unpaid portion of the fee is deferred. New Zealand citizens (unless they hold joint citizenship or Australian permanent residency) must pay upfront and receive no discount. Permanent residents must apply for citizenship by their third year to be entitled for HECS deferral in the third and all further years.

Students must begin repaying their deferred HECS debt when their income reaches $25 348. Students will have to pay a percentage of their income according to how much they earn. This percentage is taken out via the income tax system.

Related Schemes

Related to HECS are:
  • BOTPLS, or Bridging for Overseas-Trained Professionals Loan Scheme
  • OLDPS, Open Learning Deferred Payment Scheme
  • PELS, or Postgraduate Education Loan Scheme

Sources and external links


This is an Article on Higher Education Contributions Scheme. Page Contains Information, Facts Details or Explanation Guide About Higher Education Contributions Scheme


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